Indian paper firms have raised product prices in April by Rs 1,000-1,500 as cost of pulp - a key raw material - rises globally, officials said.
West Coast Paper Mills has raised prices of uncoated paper, a variety that is used for copier, by Rs 1,250-1,500 a tonne, V Subbiah, vice president of marketing, told Reuters on Thursday.
Abhishek Industries has also raised prices by Rs 1,000 a tonne, Sharad Dube, head of marketing, told Reuters over the telephone.
While Ballarpur Industries, India's top producer, has not hiked prices in April, it has rolled back the discounts it had offered its customers in March, a company spokesman said.
"Pulp prices are going up and availability is not there. Chemical prices are high," Subbiah said. "Demand looks to be alright now but it will grow in another 3-4 months."
The global pulp and paper market is recovering after a deep tumble at the start of 2009 and companies around the world boosted output as prices rose worldwide.
Hardwood pulp prices are around USD 750 a tonne and they could rise to USD 800 in the short term, according to Itau Securities analyst Marcos Assumpcao. Brazil and Chile are the world's largest producers of pulp.
At 1.27 p.m., shares in West Coast Paper Mills were up 1.69% at Rs 72.25, while Abhishek Industries jumped 7.67% to Rs 18.68.
